On Tuesday, Sears Canada declared that it intends to get court approval to start selling off all of its remaining assets and stores, a step that would see to the closure of about 130 outlets and lead to the unemployment of about 12,000 workers.
Sears Canada stated that it is seeking out the verdict to commence the insolvency of a lot of stores, following the advice and authorization of FTI Consulting Inc., its monitor. It added that it is full of regret due to some jobs lost and shops closed. It also mentioned that if court approval to start the process is granted, it hopes that liquidation sales at its outlets would commence as early as 19th October and go on for about 11 to 13 weeks. Becky Penrice, executive VP of Sears apologized to employees by saying that the decision to close down is not a result of the poorness of their efforts, but a side-effect of the current state of the retail market.
Dealing With Legal Issues
Sears Canada has been under creditor protection approved by a court since the 22nd of June. Last week, it got approval from the court to shut down 11 more stores, making it a total of 71 shut-down stores. During the hearing, an FTI Consulting lawyer cautioned that Sears Canada’s time and money were fast depleting. The lawyer representing the lenders that provided Sears Canada with funding while it is under creditor protection also stated that if a buyer isn’t found, it would be best to liquidate before the year runs out to get the highest possible amount of money from the sale.